GATE CS 2020 Set 1 — Question 6

MCQ+2 / -0.67EasyReading ComprehensionVerbal AptitudeGeneral Aptitude

General Aptitude → Verbal Aptitude → Reading Comprehension

Last updated 5 September 2026

Question

Goods and Services Tax (GST) is an indirect tax introduced in India in 2017 that is imposed on the supply of goods and services, and it subsumes all indirect taxes except few. It is a destination-based tax imposed on goods and services used, and it is not imposed at the point of origin from where goods come. GST also has a few components specific to state governments, central government and Union Territories (UTs). Which one of the following statements can be inferred from the given passage?

Correct answer (D) GST is imposed at the point of usage of goods and services. Solution The passage explicitly states: "It is a destination-based tax imposed on goods and services used". This directly supports option (D). Option (A) is incorrect as it's destination-based, not origin/production-based. Option (B) is incorrect as it subsumes all "except few". Option (C) is incorrect as it mentions components specific to UTs. Turn this into a strength. Explore AI-powered practice and doubt support with Success Tracker.

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Correct answer (D) GST is imposed at the point of usage of goods and services. Solution The passage explicitly states: "It is a destination-based tax imposed on goods and services used". This directly supports option (D). Option (A) is incorrect as it's destination-based, not origin/production-based. Option (B) is incorrect as it subsumes all "except few". Option (C) is incorrect as it mentions components specific to UTs.

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